Richard Brubaker

Is a Hard Landing in Store for China's Economy?

“We are reviewing the buy American proposal and we are committed to a plan that will save or create 3 million jobs, including jobs in manufacturing,” said Jen Psaki, a spokeswoman for Obama’s transition team.

Notes to Obama transition team:
1) There is a difference between "Made in the USA", American made in China, Chinese made in America and Chinese made in China

2) Going back to "Buy American, it could be your job" could potentially be a problem for some of America's biggest firms (read: biggest employers) as their products made in China are boycotted, and their profits fall

3) Why is it that no one speaks about the huge gains that have occurred in the US logistics industry as a result of trade? Has anyone considered the thousands of logistics professionals that could be laid off once containers stop flowing, the thousands of construction workers who would have been expanding ports, the truck drivers, and so on?

Protectionism is a bad idea all around, especially when those in the drivers seat are unable to see a lot of blind spots. "Buy American, it could be your job" will result in a lot more downside than up, and it is my hope that the Obama team drops this idea before they find themselves with a few thousand dock hands asking for a bailout.

R
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